Price increases in the paper industry are likely to relieve cost pressures on European paper producers, however this may only provide temporary relief to the sector, a new report from Moody’s has stated.

Moody’s made its assessment following the decision by Spanish paper giant Lecta to increase prices on its different paper grades last month by 7%.

Other paper producers have increased paper prices across a number of grades by up to 10% against the backdrop of rising input costs, especially for pulp.